Organizational culture

Organizational culture is the behavior of humans within an organization and the meaning that people attach to those behaviors. It includes the organization's values, visions, norms, working language, systems, symbols, beliefs, and habits. It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving and, even thinking and feeling. Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. Also, organizational culture may affect how much employees identify with an organization.

Overview

Organizational culture can be viewed as an important aspect of organizational life, and it is believed that it can affect the performance and success of an organization. The concept first appeared in the business literature in the early 1980s and has become widely accepted as a critical component of organizational dynamics.

Elements

The elements of organizational culture include:

• Values: These are the core principles and ideals upon which the organization is built.
• Norms: These are the informal guidelines of behavior and the organization's expectations.
• Symbols: These can be logos, uniforms, or any other visual representations that signify the organization.
• Language: Specific jargon or terminology that is unique to the organization.
• Rituals: These are the ceremonial acts or routines that are valued within the organization.
• Beliefs: These are the shared convictions or premises held by the organization's members.

Types of Organizational Culture

According to Robert E. Quinn and Kim S. Cameron at the University of Michigan at Ann Arbor, there are four types of organizational culture:

• Clan Culture: A family-like or tribe-like type of corporate environment that emphasizes consensus and commonality of goals and values.
• Adhocracy Culture: A dynamic and entrepreneurial process that values innovation and readiness to adapt to changes.
• Market Culture: A results-oriented framework that stresses achievement, results, and action as important values.
• Hierarchy Culture: A structured and formalized workplace where stability, predictability, and efficiency are valued.

Impact on Performance

Research suggests that organizational culture has a significant impact on the performance of an organization. A positive culture can enhance performance by promoting consistency, self-management, and commitment among employees. Conversely, a negative culture can hinder performance and lead to a lack of motivation and dissatisfaction among employees.

Changing Organizational Culture

Changing an organizational culture can be challenging, as it involves altering the deeply rooted values and behaviors that define the organization. Strategies for changing culture include:

• Leadership involvement: Leaders play a crucial role in setting the tone and example for what is acceptable within the organization.
• Employee engagement: Involving employees in the change process to ensure they have a stake in the outcome and understand the reasons for change.
• Communication: Keeping communication open and transparent to help alleviate uncertainties and rumors.

See Also

• Corporate governance
• Human resource management
• Organizational behavior
• Organizational structure